Thursday, February 26, 2009

Obama's Mortgage Relief

From Realty Times on February 26, 2009

Obama's Mortgage Relief Could Bailout 9 Million Homeowners
by Broderick Perkins

The President Barack Obama administration's "Homeowner Affordability and Stability Plan" could help as many as 9 million struggling homeowners, but largely those in lower-cost housing areas.

The $275 Billion Plan, with a March 4 rollout, includes a refinancing program for "responsible" borrowers who haven't missed payments and whose loans are larger than the value of their homes, and a loan modification provision with incentives for lenders to voluntarily modify certain mortgages.

Many Californians and others in high cost areas may not see much immediate relief but federal aid earmarked for those higher-cost areas could come later.

Refinancing

Under the refinancing provision, homeowners with less than 20 percent equity in their homes, who now find it difficult -- if not impossible -- to refinance, will be able to get new loans at lower interest rates provided the new note doesn't exceed 105 percent of the home's value.

A refinanced mortgage replaces the old loan with a new one. The provision targets 4 to 5 million homeowners.

Struggling homeowners in California and other high cost housing markets will benefit less from the plan because the provision only applies to mortgages held by Fannie Mae and Freddie Mac.

During boom times Fannie Mae and Freddie Mac loans were only up to a maximum of about $417,000. The limit was temporarily raised to $729,750 in 2008, when fewer people were buying. This year, the limit went back to $625,000. The latest federal economic stimulus package (American Recovery and Reinvestment Act), which Obama signed in February, returned the limit to $729,750, at least for 2009.

An estimated 60 percent of the home loans made in California in 2006 and 2007 were larger than Fannie and Freddie loan limits. During 2008 about 33 percent of home loans were above those so-called "conforming" levels, according to the California Association of Realtors. Other high-cost regions experienced varied levels of "non-conforming" loans.

"When I saw 'Fannie Mae and Freddie Mac' I said his (President Obama's) team needs to come to Silicon Valley," said Quincy Virgilio, president of the Santa Clara County Association of Realtors.

"This isn't going to help many people here," he added.

Virgilio said the bulk of California's home-owning population lives in major metropolitan areas where housing costs are high.

Loan modifications

The loan modification part of the plan targets 3 to 4 million "at-risk" homeowners, those with a high mortgage debt-to-income ratio and those with mortgages larger than the value of their home or "under water."

A loan modification, unlike a refinance, changes the terms of the existing loan without writing a new one and could serve higher-cost housing markets better than the refinance plan.

Also called a "workout," this provision is open to anyone including those who haven't missed payments, but may be at risk of missing payments. A modification is designed to get payments down to 31 percent of the homeowner's income. That could be accomplished by a reduction in the interest rates or principal, or an extension of the term of the loan, or perhaps a combination.

The modification plan is open to anyone with any loan that has a balance under Fannie Mae and Freddie Mac limits, which now as high as $729,750.

The modification program, also designed to standardize a hodge-podge of modification efforts by lenders, also comes with incentives for both homeowners and lenders.

Loan services get up to $4,000 for modifying mortgages and borrowers got a principal reduction of up to $5,000 over five years for paying on time.

Credit market boost

Obama's plan also calls for an infusion of $200 billion into the government-owned Fannie Mae and Freddie Mac. The bundle should help lower interest rates and spur more borrowing.

Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California-Berkeley and the Rosen Consulting Group says more relief could come to high-cost areas.

Obama administration's plan also seeks to change bankruptcy rules to allow judicial mortgage modifications to reduce mortgage balances to fair market value provided the borrower sticks to a court-ordered payment plan.

National Association of Consumer Bankruptcy Attorneys (NACBA) applauded the judicial workout proposal.

"Ever since the mortgage foreclosure crisis erupted into the public view in 2007, a broad array of consumer, civil rights, housing, community, labor and other organizations, as well as economists, have advocated judicial mortgage modification relief as an effective approach to stemming the growing tide of foreclosures – a solution that, unlike every other solution being considered in Washington, comes at absolutely no cost to U.S. taxpayers," said NACBA president Carey Ebert of Fort Worth, TX, in a prepared statement.


Copyright © 2009 Realty Times. All Rights Reserved.

More from Broderick Perkins at DeadlineNews.com

Monday, February 23, 2009

Stimulus Plan - By State/City - You can vote!

This is a very interesting web site. It allows you to see state by state the amount of stimulus requested by U.S City Mayors. It also lets you look at a breakdown by city.

This site was put together by StimulusWatch.org? Details and a FAQ are at
THE HOME PAGE


You can even vote your support for each project.

PROJECTS BY STATE & CITY & AMOUNT


– President Barack Obama in his Inaugural Address

"The question we ask today is not whether our government is too big or too small, but whether it works—whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. Those of us who manage the public's dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government."

Congress and the President are getting ready to spend billions of dollars to try to stimulate the economy. As a result, the U.S. Conference of Mayors has responded by releasing a list of "shovel-ready" projects in cities around the country that the mayors would like to see funded. President Obama, however, has promised to spend stimulus dollars only on critical projects.

"What we need to do is examine what are the projects where we're going to get the most bang for the buck [and] how are we going to make sure taxpayers are protected," he has said. "You know, the days of just pork coming out of Congress as a strategy, those days are over."

StimulusWatch.org was built to to help the new administration keep its pledge and to hold public officials to account. We do this by allowing you, citizens around the country with local knowledge about the proposed projects in your city, to find, discuss and rate those projects.

Arizona Mayors submitted 743 "shovel ready" projects for a total of $5,574,053,222.

Stimuluswatch.org is a great example of how easy it is today for people to, as Clay Shirky says, “organize without organizations.” Stimuluswatch.org began after Jerry Brito attended a mayor’s Conference and posted this request:

"Let’s help President-Elect Obama do what he is promising. Let’s help him “prioritize” so the projects so that we “get the most bang for the buck” and identify those that are old school “pork coming out of Congress”. We can do this through good clean fun crowdsourcing. Who can help me take the database on the Conference of Mayors site and turn each project into a wiki-page or other mechanism where local citizens can comment on whether the project is actually needed or whether it’s a boondoggle? How can we create an app that will let citizens separate the wheat from the pork and then sort for Congress and the new administration the project in descending order or relevancy?

Your chance to provide your input to how the funds are spent! Go for it!


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'Stimulus' and 'Stability' Equal Help for Homeowners

Sent with permission of:

Mike Neill
480-505-2202 ext. 208
mike@aamcbank.com
6139 S Rural Road, Bldg 200-104
Tempe, AZ 85283


Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction

It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phase-out Examples

According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phase-out means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured homes and houseboats used for principle residence also qualify.

Higher Loan Amounts

More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.
As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

Mike Neill


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Sunday, February 22, 2009

Top 10 People to Blame for the Financial Crisis

Get your dartboards out - here are the names of those to put on the target!

From National Realty News of Thursday, February 19, 2009 - By Stefan Swanepoel:

TOP 10 PEOPLE



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Wednesday, February 18, 2009

Inside the Meltdown

Last night I watched a 1 hour show on the Public Broadcast System's "Frontline" called "Inside the Meltdown".

It was, without question, the most comprehensive explanation I have seen of why we are in the economic mess facing us today. I urge you to spend the nearly 1 hour viewing the show to better understand the mistakes that were made and where we are headed now. It clearly explains why lending for homes came to a screching halt, what toxic loans are, and why we must not let this ever happen again.

We regrettably have now begun to nationalize the nation's financial structure as we now own, as citizens, or as our government if you prefer, the 2 largest financial firms in the world, Fannie Mae and Freddie Mac and a percent of the dozen major banking firms.

You can view the show on your own computer and develop your own opinions on how to deal with what the future holds by going to
FRONTLINE

and clicking on "Inside the Meltdown". It takes a few minutes to load - then click on the Green Arrow and turn up your sound.

You are given the opportunity to download the video by mowing your cursor around the page and playing the program in Real Player at your own pace if you prefer. I also suggest you close any open pages on your browser to ensure a clean viewing of the program.

Folks, IT IS WORTH THE TIME! The better we understand how and why this happened, the better we can individually deal with it - and perhaps even help to prevent our grandchildren from facing this terrible ordeal again!

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Tuesday, February 17, 2009

Economic Stimulus Plan

Economic Stimulus Plan Benefits the Housing and Mortgage Industries

From: Michael Neill [mailto:mike@aamcbank.com] American Alliance Mortgage Company, Revised February 17, 2009

Just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
________________________________________
Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
________________________________________
Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
________________________________________

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.
As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

This message was sent from Michael Neill to denis@denismarque.com. It was sent from: American Alliance Mortgage Company, 6139 S Rural Rd Bldg 200-104, Tempe, AZ 85283.

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Real Estate Outlook: Bottom in Sight?

From Realty Times of February 17, 2009

Real Estate Outlook: Bottom in Sight? by Kenneth R. Harney:


Signs of a cyclical turnaround for housing are on the upswing. Sales are up sharply in many of the hardest-hit markets, and prices are firming in many others.

And now, even some of the country's previously most-bearish economists and media outlets are seeing the light.

Last week, Dr. Mark Zandi, chief economist for Moody's Economy.com, surprised analysts by announcing that "the bottom of the housing downturn is in sight for the nation."

Just days later the Wall Street Journal -- which had been among the most pessimistic of major U.S. dailies -- ran a prominent article with this headline: "For some, it's finally time to dive into the housing market."

The article focused on purchasers in Phoenix, Seattle and Connecticut who recently found that lower prices and affordable mortgage rates made ownership possible for them. They got what appear to be great deals.

The Journal quoted one Phoenix buyer who had just picked up a bargain-priced first home as saying, "six months ago, I didn't think I would ever own a home. Now I do. It's so perfect."

It's obviously good news that doom and gloom economists like Zandi and the Wall Street Journal are picking up on what's happening in local real estate markets. More important for the larger market, though, is that they are in the position to spread the word to consumers that it's now not simply a "good time to buy," it's also a safe time to buy.

Mortgage rates continue to hover near historic lows. According to the Mortgage Bankers Association, thirty year fixed rates last week averaged 5.2 percent, down from 5.3 percent the week before. Fifteen year rates average a flat five percent.

But don't mistake the message here: The economy as a whole still is facing huge problems -- unemployment at 7.6 percent, banks taking billions from the government, a stock market that's still pumping out losses, household consumption down.

None of that is positive for real estate.

But here's what may be developing: Just as housing's troubles preceded the rest of the economy on the way down, there are increasing indications that housing could be out ahead on the national economic recovery.

Why? Because pent-up demand is strong, affordable financing is there for buyers with decent credit and a downpayment, and improved federal tax credit incentives make the equation even better.

Once more consumers grasp the fact that the worst is over for real estate, we just might see some very encouraging numbers in the months ahead.

Copyright © 2009 Realty Times. All Rights Reserved.

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Monday, February 16, 2009

Non-Repayable Tax Credit

From Realty Times of February 16, 2009

Washington Report: Non-Repayable Tax Credit by Kenneth R. Harney

Further to the 1st Time Home Buyer article of yesterday:

First time buyers will get an improved, higher, nonrepayable version of last year's repayable $7,500 tax credit under Congress's massive $789 billion economic stimulus package.

That in turn should lead to 500,000 additional home sales this year, according to new estimates prepared by the National Association of Realtors economics staff and provided to Realty Times.

With the credit eligibility period now extended to September 1, instead of the previous cut-off date of June 30, the 500,000 additional transactions will include purchases not only by direct users of the credit, but also replacement home purchases by sellers who are moving out …or moving up.

This year's better tax credit should also generate huge amounts of "ripple effect" bang for the buck -- $62,000 of additional economic activity for every house sold - or roughly $31 billion in incremental economic benefits, according to the Realtors' projections.

Why? Because virtually every home purchase triggers other purchases and payments down the line -- furnishings, appliances, remodeling, real estate commissions, moving expenses and the like.

Not everybody in Washington is happy with the new credit, however. The National Association of Home Builders pushed hard for a $15,000 credit for all purchases during 2009 -- and got it inserted in the Senate version of the stimulus package.

But House and Senate conferees decided that was too costly in a bill that already had $280 billion in other tax benefits, and they cut it back to the smaller version passed earlier by the House.

Though the improved tax credit is drawing most of the attention, the stimulus package has a handful of other incentives and benefits for home owners. For example, it extends or expands all energy-related tax credits -- for everything from energy efficient heating and airconditioning units, doors, windows and insulation - through the year 2010.

And the bill should produce a lot of additional economic activity aimed at "weatherization" of up to one million houses owned by moderate-income families -- $5 billion worth of new subsidies, according to House Speaker Nancy Pelosi.

Still another big program in the package should create economic ripple effects in neighborhoods where there have been heavy numbers of foreclosures. The bill provides two billion dollars to buy up, renovate and either rent out or resell foreclosed and vacant houses.

The money will go to local governments, but the actual rehab, rental and resales work will flow to people in the private sector.

So if you live or work in an area that's seen a lot of foreclosures, check in with your local housing and planning departments to see how you might fit in.

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Copyright © 2009 Realty Times. All Rights Reserved.


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Saturday, February 14, 2009

Home Buyer Tax Credit

I send you to this page from New Quest City since it the clearest article I have seen thus far to the effect on Real Estate of the American Recovery and Reinvestment Act of 2009. Primarily directed at Buyers, I note that which is good for Buyers serves the Sellers as well. More Buyers, more sales!

Highlights:

1) If you have not owned a home for 3 years, you are a first time Home Buyer!
2) You can get up to $8,000 tax credit (not deductions, but money to pay taxes).
3) You do not have to repay the $8,000 if you keep the home for 3 years.
4) You must close the sale in 2009.

There is more, so read the articcle.

First Time Home Buyer Tax Credit


There are no doubt questions still not answered but a 1,000 page Congressional Bill does take a bit of time to digest and understand.

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Friday, February 13, 2009

Lower Mortgage Rates

From Realty Times of February 13, 2009

Lower Mortgage Rates Translate into Large Volume of Refinancing

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.

The 15-year FRM this week averaged 4.81 percent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.25 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. A year ago, the 5-year ARM averaged 5.19 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. At this time last year, the 1-year ARM averaged 5.00 percent.

"Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance," said Frank Nothaft, Freddie Mac vice president and chief economist. "This would translate into a monthly payment savings of around $188 on a $200,000 mortgage."

"The Bureau of Economic Analysis estimated that the weighted average mortgage rate of loans outstanding was about 6.2 percent in the fourth quarter of 2008. As a result, the share of refinancing among the total number of conventional mortgage applications has exceeded 50 percent for the past 11 weeks and averaged 80 percent over this period, according to the Mortgage Bankers Association."


Copyright © 2009 Realty Times. All Rights Reserved.

California Ends '08 With Run Up of Sales

From Realty Times of February 13, 2009

Hot Market: California Ends '08 With Run Up of Sales, Prices Stable
by M. Anthony Carr

Average sales prices in the Western United States dropped year over year by almost 27 percent, which gave buyers incentive to jump off the fence at the second highest level for the year. Pending sales jumped 36 percent in December, compared to a year earlier, according to the National Association of Realtors.

In the California Association of Realtors 2008 market wrap up senior research analyst Oscar Wei says, "Annual sales of existing homes for 2008 increased 26.7 percent from a revised 2007 figure of 346,940 to 439,740 in 2008. Large year-to-year percentage gains in sales will likely continue … ."

The more telling side of the coin is that prices are declining month by month at a much smaller rate -- only 2 percent from November to December. (Year over year, the average sales price was down 38 percent statewide.

Another sign of the strong recovery is demonstrated in the supply side number. "The unsold inventory index was 5.6 months in December, down from 6.9 months a month earlier and was less than half of the inventory level of 13.4 month a year ago. The index has been below the long run average of 7 months since July 2008, and the current inventory level of 5.6 months was the lowest since March 2006," Wei says.

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Copyright © 2009 Realty Times. All Rights Reserved.

Wednesday, February 11, 2009

Don't Walk Away from your Home

News reports indicate that lawyers are now active in the mortgage problems. They are working with banks and lenders to bring suits against those who abandon there homes and/or use "jingle mail" - the practice of mailing the house keys to the lender.

Talk to the bank or lender who holds your mortgage - make them aware of your problem in meeting payments. If you miss 3 monthly payments, the bank will give you 90 days (in most cases) to do a "short sale" on your home, a much, much better option than jingle mail.

If you need assistance finding experts in the field of "short sales", I don't claim to be one, call me and I will put you in touch with some one that can help you. Under no circumstances give money up front to anyone who claims to be able to help you - most, if not all, asking for up front money will do nothing for you.

You can reach me at denis@denismarque.com for assistance.

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Monday, February 2, 2009

Housing Lobbyist Groups Active

From Realty Times of February 2, 2009

Washington Report: Lobbyist Groups Active
by Kenneth R. Harney

Housing and mortgage groups were unusually active last week on Capitol Hill, pushing hard for a better tax credit to spur home purchases.

In coordinated lobbying efforts, homebuilders, Realtors, bankers and mortgage companies focused on the Senate, where final details of a nine hundred billion dollar economic stimulus package were being hammered out all week.

Four trade groups sent a joint letter to the Senate Finance Committee, which has responsibility for all tax-related aspects of the stimulus, applauding the committee's decision to make the existing seven thousand five hundred dollar tax credit nonrepayable as the House Ways and Means Committee voted to do the prior week.

But the amended credit could be improved even more, the groups said, if the Senate makes several additional changes.

Tops on the list: Extend the eligibility period for using the credit from the current deadline of June thirtieth through the end of December.

“If the stimulus bill is signed sometime in February, as anticipated,“ said the groups, “only about four months will remain for the credit to have a meaningful impact. The spring, summer and early fall months are historically the most active seasons for home purchases. Allowing the credit to expire June thirtieth could undermine” the ability of the credit to stimulate potentially hundreds of thousands of sales this year .

The four trade groups, the National Association of Realtors, the National Association of Homebuilders, the Independent Bankers of America and the Mortgage Bankers Association, asked the Senate to take two more steps: expand eligibility to ALL buyers of homes this year --- not simply first time purchasers- and authorize a mechanism whereby the seven thousand five hundred dollar credit could be made available as downpayment cash at settlement.

Eliminating the first time buyer restriction would be a huge change. Under the current tax code and the House Democratic stimulus package, only taxpayers who have not owned a home during the previous three years are eligible for the credit. Opening that up to all purchasers -whether moveup buyers, downsizers or first timers would stimulate sales far more -- perhaps half a million additional sales -- according to some estimates.

Though the four trade groups joined to push for an improved tax credit, they don't necessarily agree on all aspects of the plan. For example, the National Association of Homebuilders continues to lobby Congress and the Obama administration for a ten percent credit up to twenty-two thousand dollars available to all 2009 purchasers.

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Copyright © 2009 Realty Times. All Rights Reserved.


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